Tory Burch Says Hola : Designer Sells Minority To Mexican Equity Firm

Tory Burch Says Hola : Designer Sells Minority To Mexican Equity Firm

Tory Burch has found a new partner.

After a yearlong search for additional financing, the designer has sold a minority stake in her more than $200 million firm to Tresalia Capital, a Mexico City-based family-owned and -operated investment company known for investing in Mexican projects from young entrepreneurs.

Tory Burch executives declined to divulge the final price and the percentage stake they sold to Tresalia, but industry sources estimate it at between 20 and 25 percent.

Burch and her ex-husband, Christopher Burch, who cofounded Tory Burch five years ago, still jointly own the majority stake in the firm, which now operates 18 freestanding stores and wholesales apparel and accessories to 450 high-end department and specialty stores worldwide. Christopher Burch is still actively involved in the company, but declined comment Thursday.

With the ongoing recession, increasing credit crunch and overall declining retail sales, the Burch deal comes at a time when few acquisitions or other investments are being made in the fashion world. In the past year, only a handful of key brands have inked deals Jones Apparel Group Inc. acquired a 50 percent stake in Rachel Roy, VF Corp. acquired the Splendid and Ella Moss brands and Iconix Brand Group Inc. purchased Ed Hardy.

Tresalia is run by Mara Asuncin Aramburuzabala, who is president and chief executive officer. According to Tory Burch, her company is Tresalia's first investment in the apparel industry. Tresalia has invested...